and sheriff's department expressed interest in this idea. and there is a $9 kblinl budget deficit. the mayor asked for input before the city goes forward with ideas. >> and you've probably noticed gas prices have gone up a little bit more and web site gas buddy.com reports it's happening after chevron reported a pipeline outage. and there are two are prices 10% higher. the average price is $4:33. >> and next year a new california hau will ban licensed mental health professionals from trying to turn gay and lesbian teens straight. a christian legal group is going court to stop the law. there are authorities having to decide whether this can take affect. >> i've heard this is a sin. >> steven went through a controversial treatment in an effort to become straight. but the bay area man says no one should go through it because it can be dangerous. >> it causes depression, anxiety. thoughts of suicide, makes you anxious causes you to hate yourself he was excited to hear the governor signing into law some day a ban preventing gay conversion therapies on minors. methods american psychiatrist s

considering minting commemorative coins with proceeds to help he raise the federal deficit. -- erase the federal deficit from moon oring the pro football hall of fame, mark twain and send 10 of mother's dame in the past 30s the coins have generated more than 400 million dollars for private companies. congress wants to make coins to help the federal economy. >>> american claims pilots are deliberately causing delays and cancellations leaving passengers in the dust. the troubled airline says pilots are calling in sick or grounding planes for minor repairs. the union says american is operating with too few pilots and aging planes. some passengers say their flights have been cancelled more than once. >> my boss needs me back at work and i can't show up because i'm here to them i'm just a number. >> one flight tracker estimated 100 american flights were cancelled monday san francisco international reports no flight disruptions. >>> san francisco 49ers say their new stadium is 15% complete and 100% on track to open on schedule for the 2014 football season. the media was given a tour of the 1.2

understand, if romney wins this presidential election, they'll be paying the bill not to reduce the deficit, not to reduce jobs, to give huge tax cuts to the wealthy. >> the idea of the president is not going to tell the truth, has become the theme inside the romney camp. here's what governor romney said. >> you learned and studied all this about president obama as a debater, what are you looking? >> i think he's going to say a lot of things that aren't accurate. you know, i would be tempted to go back to that wonderful line by ronald reagan, there you go again. >> he's admitted that your campaign has gone overboard at times with the rhetoric, are you worried that president obama is going to have a rough night with the fact-checkers wednesday night? >> absolutely not. we still believe that this is going to be a close race. but the reason, you know, governor romney is having a rough patch here is not because what we're saying about his plans, it's his plans. all right, you ought to start by looking in the mirror. people don't want to go back to the same trickle-down policies that caused the

huge deficit for romney among women. the president with a 20-point lead in ohio, a 20-point lead in florida. we asked about his most powerful surrogate his wife. >> we heard from your wife, ann who responded to criticism within your own party. >> stop it. this is hard. you want to try it get in the ring. >> i know you've been in the ring before. you've heard it all before. you heard your wife that fired up about the incoming fire. i think it's what you say to your wife. >> ann is a very strong character. she doesn't like when people go after me. but i'm just fine. i got broad shoulders. >> reporter: about that criticism from within their own party, i did ask the governor if there's any changes in store at his campaign. he said we're always tweaking message but no changes as far as staffing is concerned. as we were taking off the microphones he joked if there's a change at the top it's going to be my wife i put in charge. >> thank you so much. david muir reporting from ohio tonight. >>> now we turn to a big boost in holiday hiring which could mean extra money for american families. t

police department. the city council has already done belt tightening to close the deficit, laying off 42 employees or 10% of the work force. there are contracts for workers expire at year's end. the mayor says all options are being studied. there is a campaign that has surfaced. and there is a proposal may be a moot issue. the only agency interested in bidding was the sheriff's department now saying they're not going to bid. >> there is. the east contra costa fire district received a grant of nearly $8 million meaning it can start filling 15 positions it was forced to eliminate in july. this will allow the district to reopen three fire stations. >> neighbors in oakland are crediting a good samaritan for warning them about a fire that broke out in east 15th street. a man in the building saw flames on a staircase. he then went door to door and alerted neighbors. no residents were hurt but a firefighter sprained his back. that fire drove people from their homes. >> berkeley firefighters are mopping up after a house fire that was started by a bird. this happened this morning on delaware s

over redevelopment money. brown's administration says it is needed to help close the budget deficit. >> dance craze spreading across the globe sweeps up a top executive. >> there is a struggling maker of black berry may be on the verge of a turn around. >> well, facebook is hoping a new gift giving service will unwrap a source of revenue. this allows users to buy and accepted real presents on both desk top and mobile. it's based on karma which facebook bought in mai. it could be a game changer. sources tell us dish network is in talks with mtv parent viea come, food network parent script about offering channels online f agreeing dish could charge a lower price fr a shawler bundle of channels and this is what customers may be able to select. research in motion shows positive signs and there are sales falling in the quarter. the company did post a loss of $253 mimin. and there is some solid growth in africa and asia just two days after giving a sneak preview of the operating system, expected to be available next year. all of this is helping rim to rise in after hours trading. and the

consecutive day. he slammed the bush administration for the budget deficit. >> they had doubled the national debt in eight years. >> with his path to the white house shrinking, florida you is looking like a must win scenario for romney. but today paul ryan focused on new hampshire. the granite state has four electoral votes, but ryan said that could be the difference in a race that will come down to a handful of states. >> thank you, granite staters, for sending mitt romney to the white house and barack obama back to chicago. >> the campaign shifts to a different stage with wednesday night's high stakes showdown between president obama and romney. >> if you take a look at the history of debates, it is not about policy specifics. it is not really about facts. every change that happened in -- because somebody's style did badly or did well. >> both candidates will spend the next few days in intense prep sessions. trailing in the may have romney may have the most on the line. his campaign is looking at this debate as a chance for a game changer. karen travers, abc news, washington. >>>

the bush administration for the skyrocketing deficit. >> by the time the reins got turned over to barack and me, they had doubled the national debt in 8 years. >> reporter: with his path to the white house shrinking, florida's looking like a must-win for romney. but today, his runningmate, ckman paul ryan, focused on new hampshire, with four electoral votes. but ryan said that could be a difference in the race that will come to a handful of states. >> thank you, granite staters, for sending mitt romney to the white house and barack obama back to chicago. [cheering] >> reporter: the campaign shifts into a different stage this week, with wednesday night's high-stakes showed own showdown between about the barack obama and mitt romney. >> every change that has happened in a debate, if you look at the history, it's changed because of somebody's mannerisms or style -- they did badly or well. >> reporter: both candidates will spend the next few days in intense sessions. romney may have the most on the line. his campaign is looking that the for a chance for a game changer. abc news, washi

deficit. >> by the time the reigns got turned back over to bach and me, they had doubled the national debt in eight years. >> with his path to the white house shrinking, florida is looking like a must-win area for romney. but his running mate focused on new hampshire. the granite state has just four electoral votes but ryan said it could be the difference in a race that will come down to a handful of states. >> thank you, granite staters, for sending mitt romney to the white house and barack obama back to chicago. >> the campaign shifts into a stink stage with the high stacks showdown 2003 president obama and romney. >> if you take a look at the history of the debates, it's not about policies or facts. every change that happens in a debate if you look at history, it changes because of somebody's mannerisms or style. they either did badly or well. >> both will spend the next few days in against prep sessions. trailing in the policy, romney may have the most on the line and his campaign is look at this debate as a chance for a game changer. abc news, washington. >>> is the deba

administration for the skyrocketing deficit. >> by the time the reigns got turned back over to barack and me, they had doubled the national debt in eight years. >> with his path to the white house shrinking, florida is looking like a must-win area for romney. but his running mate ryan focused on new hampshire. the granite state has just four electoral votes, but ryan said it could be the difference in a race that will come down to a handful of states. >> thank you, granite staters, for sending mitt romney to the white house and barack obama back to chicago. >> the campaign shifts into a different stage with the high stakes showdown for president obama and romney. >> if you take a look at the history of the debates, it's not about policies or facts. every change that happens in a debate if you look at history, it changes because of somebody's mannerisms or style. they either did badly or well. >> both will spend the next few days in intense prep sessions. trailing in the polls, romney may have the most on the line and his campaign is look at this debate as a chance for a game changer. abc new

deficit we had been looking at that the economy loss since the president took office. even with the job creation the unemployment rate of 8.5% higher than the 7.8% when he took office. stocks on the defensive, losing streak yesterday, under pressure the dow down 100 points bloomberg index is trading slightly lower. witches, princesses, vampires, batman among top choices for halloween costumes more than a million adults and kids plan to does as some type of athlete more than 75,000, a political costume as americans gear up to spend 8 billion dollars. >>> any thoughts about what we are going as? >> teletubbies. >> are you? >> all of us. scary. >> she will trick-or-treat alone this year folks. >> it feel too much like halloween is around the corner. going to feel like a return to summer. >> warm weather on the waymont diablo from vollmer peak haze around the east bay valleys, hills. flight arrival delays into sfo because of the low clouds this morning about 71 minutes there oakland, san jose on time new york organized areas of wet weather just mist in the air due to cloud cover, thickest a

florida for a second consecutive day. he slammed the bush administration for the budget deficit. >> they had doubled the national debt in eight years. >> with his path to the white house shrinking, florida you is looking like a must win scenario for romney. but today paul ryan focused on new hampshire. the granite state has four electoral votes, but ryan said that could be the difference in a race that will come down to a handful of states. >> thank you, granite staters, for sending mitt romney to the white house and barack obama back to chicago. >> the campaign shifts to a different stage with wednesday night's high stakes showdown between president obama and romney. >> if you take a look at the history of debates, it is not about policy specifics. it is not really about facts. every change that happened in -- because somebody's style did badly or did well. >> both candidates will spend the next few days in intense prep sessions. trailing in the polls, romney may have the most on the line. his campaign is looking at this debate as a chance for a game changer. karen travers, abc news, wa

and train workers and reduce the deficit. voters in ohio liked the message the president delivered on jobs there yesterday. polls show mr. obama widening his lead in the state. mitt romney also in the buckeye state telling audiences he cares about the people of america. romney acknowledging that some of the polls show him behind president obama. but he pointed to the first presidential debate less than a week from now as a potential turning point in the race. >>> in new york it was a rough ride for nearly 200 people aboard a brazilian jetliner from rio. they were bracing for a crash landing at kennedy airport because the landing gear was stuck sideways. you can see it there. the pilot circled twice before touching down. the nose gear seemed to miraculously straighten itself out just before the plane hit the tarmac. thankfully no one was injured. but some anxious moments aboard that plane. >>> airlines across the country are raking in big profits from what used to be a free service. they're pocketing billions of dollars in baggage fees all coming at the expense of fed up passengers. ab

in the deficit debate can any amount of rhetoric fill the gaps in their deficit plans and where is the country headed without sound mass flow and sound money we'll hear from blogger author and radio host karl denninger of the market on that and while the budget plans of presidential candidates may not add up we already know the lack of government planning has the us poised for this. fiscal cliff looming the fiscal cliff it's looming gorged partisan politics could push america over of this cliff. but daunting name and the right the side what exactly does this entailed one break down the potential damage and word on a day and give you a glaring example of the wasteful costs of political uncertainty all ready documented plus we have a potpourri of manufacturing data out some points to opposite directions for the u.s. and of flu of it points to negative. outcomes in europe now our guest will help us make sense of these ingredients and tell us why he thinks the u.s. recession is already baked into the cake let's get to today's capital account. so incumbent obama and. under mitt romney a

these heavy deficits have killed exports and are swamping the nation with cheap imports. we are now $120 billion of imports, 3 million jobs lost, and farmers are having their worst year. that's another reason to get the deficit down. >> mr. mondale, is it possible that the vast majority of americans who appear to be prosperous have lost interest in the kinds of programs you're discussing to help those less privileged than they are? >> i think the american people want to make certain that that dollar is wisely spent. i think they stand for civil rights. i know they're all for education in science and training, which i strongly support. they want these young people to have a chance to get jobs and the rest. i think the business community wants to get involved. i think they're asking for new and creative ways to try to reach it with everyone involved. i think that's part of it. i think also that the american people want a balanced program that gives us long-term growth so that they're not having to take money that's desperate to themselves and their families and give it to someone else

balanced budget by 1983. biggerow had more and deficits in the 4 years you've been in office. mr. president, do you have a secret plan to balance the budget sometime in a second term, and if so, would you lay out that plan for us tonight? the president. >> i have a plan -- not a secret plan. as a matter of fact, it is the economic recovery program that we presented when i took office in 1981. it is true that earlier, working with some very prominent economists, i had come up, during the campaign, with an economic program that i thought could rectify the great problems confronting us -- the double-digit inflation, the high tax rates that i think were hurting the economy, the stagflation that we were undergoing. before even the election day, something that none of those economists had even predicted had happened, that the economy was so worsened that i was openly saying that what we had thought on the basis of our plan could have brought a balanced budget -- no, that was no longer possible. so, the plan that we have had and that we are following is a plan that is based on growth in

with the deficit debate because many analysts say that the math of these two guys doesn't add up when it comes to their plans in terms of addressing a sixteen trillion dollar debt that is mounting every day with the government borrowing thirty two cents of every dollar so as you see it either of these guys have a plan and where do they each fall short. absolutely not barack obama has no plan at all he has told us nothing about what he actually intends to do put together the deficit commission it sailed there was then supposed to be a sequester and now he is going to have told people obama the way even though you're supposed to warn people that they could be laid off they're not supposed to do that because we don't want to scare people before the election. and so that's you know it's on the democrat side on the republican side we have ryan who was on the t.v. shows this weekend who refused to answer the question about exactly what he was going to do take care of it he said it was too complicated well that sounds kind of like good nancy pelosi says you got to pass this bill before

. coming up, in 2008, senator obama made this promise -- >> i am pledging to cut the deficit we inherited by half by the end of hi first term in office. >> greg: i hate those. yellow curtains. four years later and he hasn't gotten it done. why? you will hear from the president. you are not going to let me say danl eat a live bunny if you leave? >> dana: ruin my reputation. >> greg: too late. ♪ ♪ the capital one cash rewards card gives you a 50% annual bonus. and everyone likes 50% more [ russian accent ] rubles. eh, eheh, eh, eh. [ brooklyn accent ] 50% more simoleons. [ western accent ] 50% more sawbucks. ♪ [ maine accent ] 50% more clams. it's a lobster, either way. [ male annncer ] the capital one cash rewards card. with a 50% annual cash bonus, it's the card for people who like more cash. [ italian accent ] 50% more dough! what's in your wallet? >> dana: in 2008, then candidate obama thought trillions of dollars of debt was unpatriotic is what he said. once inaugurated in 2009, he promised the american people he would deal with the deficit problem. listen. >> we now ha

deficit we inherited by half by the end of hi first term in office. >> greg: i hate those. yellow curtains. four years later and he hasn't gotten it done. why? you will hear from the president. you are not going to let me say danl eat a live bunny if you leave? >> dana: ruin my reputation. >> greg: too late. ♪ ♪ does your phone give you all day battery life ? droid does. and does it launch apps by voice while learning your voice ? launch cab4me. keep left at the fork. does it do turn-by-turn navigation ? droid does. with verizon, america's largest 4g lte network, and motorola, droid does. get $100 off select motorola 4g lte smartphones like the droid razr. >> dana: in 2008, then candidate obama thought trillions of dollars of debt was unpatriotic is what he said. once inaugurated in 2009, he promised the american people he would deal with the deficit problem. listen. >> we now have over $9 trillion of debt. that we are going to have to pay back. $30,000 for every man, woman and child. that's irresponsible. it's unpatriotic. today i'm pledging to cut the deficit we inherited by

middle class. washington is focused on what these two develop are talking bthe deficit. they have to deal with the deficit. but once you're done with the deficit you have to rebuild the middle class in this country and nobody is paying much attention to that. we have a lot of rhetoric in the campaign but-- >> but the necessary done to help the middle class is to nail down the fiscal issues. if we don't nail down the fiscal issues, i don't think anything will matter. >> but i'm with you, i think it will happen because of necessity, because of the fiscal cliff. >> what it will take to rebuild the middle class? >> it's taken three decades to basically decimate the middle class. it will take something like that to rebuild it. but we have to be dedicated to that. we're focused on a fescal deficit not a human deficit, and we have a human deficit in this country. we have 27 million people either unemployed, working part time, unwillingly, or dropping out of the labor market. >> schieffer: let me work michelle into this conversation. as you sit here hearing this, it's always education that s

only pays for 8% of his proposed deficit spending. so this idea, look, overseas, which where i come from means lake superior. we both live near canada, right? the canadians have this figured out. the canadians lowered their taxes to 15%. president obama wants to tax our successful small businesses to go above 40%? when we tax our job creators at much higher tax rates than our foreign competitors tax theirs, they win, we lose. we have to get right with the idea that our jobs come from successful small businesses. we don't want to tax them more, we don't want to regulate them more, we want them to hire more. that is essential. [applause] and none of this is going to work. no business is going to be confident to take that risk to hire people, to advance people, to give people promotions and raises and job security if they see their government borrowing and spending like it is. we can't keep borrowing 36 cents of every dollar our government spends. we can't keep the federal reserve doing what it's doing. we cannot keep looking our children in the eyes knowing that we're going to give th

the take home pay goes down? do we want four more years of trillion dollar deficits? i don't believe we can afford four more years like the last four years. lou: a new report highlights governor rome -- governor romney's criticisms showing household incomes fell by an average rate of more than 8%. the census bureau revealing the number of people in poverty rose by 3 million in the first three years of the obama administration. we'll take all of that here tonight with former economic adviser to president reagan, economists, author laffer, and digital politics editor, and former bush adviser brad blakeman to separate facts from fiction in the world of presidential polls and strategies. early voting has presidential votes cast in more than half the country by next week. shannon has our report. the president's poll numbers in ohio getting a boost from stronger economic numbers, but there's head winds pressuring the campaign. the white house chief correspondent, ed henry, reports. >> since early voting starts tuesday here in ohio, it was a familiar script for president obama on his 29th v

kasich. just call him the 10% president. that is what he spiax responsibility for the deficit and libya is still raising more questions for the white house. it could have been stopped? >> paul: welcome to the journal editorial report. i'm paul gigot. you'll eyes were on ohio this week as they both hit the buckeye state hard. hoping to put 18 electoral votes in their col >> paul: politics poll real lot of attention to polls because it depends on what they take and the sample. these guys have been in ohio and they should start paying income tax. this thing is as close can be they both wouldn't be here. i expect this to go down to the wire. we are always a swing state. it will be very close. >> paul: so the democrats are saying one of big things that is helping the spent the auto bailout. is that how you lead to to help the president? >> look, we're up 123,000 jobs over the last year and three-quarters. we're actually according to the bureau of labor statistics down 500 jobs, auto jobs in ohio. the situation. chrysler has expanded and ford and gm have shrunk their footprint but we stabiliz

is what the president had to say. >> i inherited the biggest deficit in our history. over the last four years, the deficit has gone up but 90% is a consequence of two wars that weren't paid for, as consequence of tax cuts that weren't paid for. a prescription drug plan that wasn't paid for and worst economic crisis since the great depression. that accounts for 10% for the increase in the deficit. >> we asked editor james free man to run the numbers. so let's take these one by one. did president obama inherit the biggest deficit in american history? >> it wasn't the biggest and he didn't inherit it. world war ii had bigger deficits. he didn't really inherit it. he helped create it. 2009 was the first year in office and especially something he doesn't seem to want to remember, stimulus $8000 billion. >> paul: as a share of the economy it was 3.2%. it did balloon to 10.1% in 2009. i would give president bush some credit for that because in fact the recession had started. the recession for his first six months of his term. what you are saying there is a thing called $830 billion spendi

vulnerability, is it the deficit conversation? >> i think that there isn't really -- the president has done a very good job in colorado of pointing out the things he has done. agricultural exports are up largely because of new markets opening. overall exports are up. 38% by the end of last year. our economy has seen a lot of benefit. issues around the stimulus sometimes people bring that up. colorado voters are more in tune with that. there is although i think there is also some of the background issues that have risen in. women's issues -- >> i want to bring that up. is that romney's number one issue? i have seen a lot of advertising specifically targeted women here in colorado. >> when michael bennett was running for the u.s. senate those women issues came up again and again and really did turn a great number of voters in the direction of michael bennett. >> i know you are having a fight between the state and localities having to do with fracking and you want to expand energy. it sounds like romney would be on your side on some of these things and the stereotype would be the presiden

facing the so-called fiscal cliff. >> well, a couple things. he was handed a record deficit when he came into office. >> does it work to keep talking about what happened before? >> only to put in context of where he wants to take the country. we were handed a record debt. record deficit when we walked in because of two wars that weren't paid for, two tax cuts that weren't paid for. because of the economic crisis we had to take emergency action. he would do that same thing today. we saved millions of american families from the severe -- most severe economic crisis we've seen in our life times. now the president cut a trillion dollars and he has a plan to do more, a $4 trillion deficit reduction plan. the only person on that stage tonight with a real deficit reduction plan scored by the cbo, you know, scored by independent economists is barack obama. mitt romney, doesn't have a deficit reduction plan. he wants to spend $2 trillion more in defense, $5 trillion more in a tax cut won't tell us how you pay for, before you even start talking about deficit reduction. it's a joke to think mi

advertisement. he said let's reduce the deficit by $4 trillion and raise the taxes on the wealthy. that means nothing in an economy where we would be running more than $1 trillion the annual deficit. mitt romney needs to come out and just do the arithmetic for people. the average american understands state of this economy. the banks on wall street monday doing good,. ashley: case in point. ohio, which is a very important swing state, if you look at their personal income since december 2007, it has risen a whopping 2.1%. in nearly five years. mr. obama has a lead not. >> yes, the pools are an open question. i don't buy it, but i'm not a professional pollster. i think we do raises another interesting point. which is what this administration promises, we did not promise certain things -- but he promised that he would have the deficit, and where are we? the deficit has doubled and the president said that he would reduce the cost of health care. that has gone on. ashley: the numbers are there. let's bring in our next guest. he talks about the need for economic patriotism. >> given how many times w

said, why is romney talking about the deficit. much of the reason is that when you look at states, iowa and new hampshire in particular, this is an issue that resonates as an almost psychic quality that resonates in this region. i think that that is one thing to keep in mind, one of the ways in which you have these kind of strands that don't always coherent way that works for you. i think that that is one thing to keep in mind. you know, it's really interesting to think about. you have this vaccination for much of the country. the broader swath of the electorate. .. gotten it right in talking about how we actually care about the safety. it matters a lot in a free enterprise society geared we actually need to have this. or it's not actually some kind of saying that we garnish on this ballot, but an incredibly important part of making the whole system work. the problem is that ryan, the reason he excited at this as further reason, the way he gives a very apocalyptic language of the threats to free a price and what have you. that is one reasons why governors have a big advantage over legis

those cuts is going to require compromise in a different type of deficit reduction plan. given all of those virginia jobs at stake, how can you say no to any type of tax and revenue increase, even if it is paired with a greater degree of spending cuts? >> getting our fiscal house in order in washington. i saw this as being another example of washington leaders not making decisions, putting off decisions to yet another commission, which, if it failed, as it did, it would be the responsibility of the federal government, which is national defense, as well as it being what is known to be over 200,000 technology and defense jobs in virginia. what we need to do is repeal or replace obamacare. but will sit trillions in spending, and that is harmful for business. i think we need to cut out and look at where there is redundancy in government. the government accountability office has put that forward. federal government employees, we have to reward them for cost- saving ideas. in the long term, a balanced budget amendment. tim said in the last debate that this is the right thing to do. now, he

enumerate any of the deductions that he would eliminate to make the math work on his deficit plan and his tax plan. are we going to get those details in the course of the debate? >> well, you know, david, i wish you guys were just as tough on the president. the president says he's going to create a million new manufacturing jobs. he doesn't say how. he says he's going to reduce the long-term debt and deficit by $4 trillion. doesn't say how he's going to do it. let's be fair here. governor romney has laid out a direction and a vision for the direction of this country. he's not an accountant. he is not going to go line-by-line through the budget. but let's hold the president to the same standard and criticize him as well, because how does he create a million new manufacturing jobs, david? he hasn't told anybody the specifics of that. how will he reduce $4 trillion in debt? we're still waiting to hear what he thinks about simpson-bowles, which he commissioned. he's been the president and hasn't given us specifics. so let's be fair here. >> so that's really the approach then? you're a former

to make the deficit and debt reduction their signature issue is a former house and senate budget committee staffer, i believe that is safe only plan. they will be subordinate deficit reduction to giving tax breaks to the wealthy contributors. and that romney's current tax plan is a case in point. it would increase the deficit by $6 trillion over 10 years. ask yourself now, which loophole is he going to cause to make up the difference? he doesn't say and there aren't enough loopholes to do that in any case. most middle-class people like you do not consider the mortgage interest deduction to be a loophole. unlike the deductibility. and in the recent past, congressional republicans have refused to repeal that even the egregious tax loophole a corporate jet to the deficit claims are essentially fraudulent. it's simply bait for the rooms. and yes, they consider all of you to be potential. chapter five of the book describes republican tax policy as follows, quote, although you won't find it in their party platform, the gop's mission is to protect and further enrich america's plutocracy

compared to the late 90's when we fought our way out of these deficits and the last 12 years when we have gone from 4 trillion dollars in debt to 16 trillion dollars today? >> i am glad you mentioned that number. it is going to cause a huge problem. if you have cancer you do not wait until it is over your whole body. get all of these things, really explain the problem, and hopefully we will get people to deal intelligently with the problem. your wife he ran on fiscal responsibility in washington, declining trust in government, in addition to nafta. the truth is we are much worse on all of those issues today than we were in 1992. gooif you look back at 1992, in part because of the world ross , they did several things. impose budget controls and taxes when they thought they were responsible. they did the right thing for the country. president bush 43 -- his term is over. whoever the next president is needs to change course, because if we do not, the problems of europe could have here. >> we are going to talk about some of these issues of 9-11 and the war and the health -- in the tax

problem of deep recession and deficits by more austerity when the economy is this weak. i think europe has a big problem. but for u.s. toward we should take it with a grain of salt. europe is slow, but we don't export that much to europe. our financial system looks very strong. i think u.s. consumer confidence at this stage is somewhat resilient to the stories. it is a bigger story for the europe than the united states. >> in the united states we have a different set of worries we are seeing warnings from big american companies about their future earnings. we ended the third quarter and already we heard from fedex, caterpillar, big global companies that are citing europe. caterpillar is citing china, as well. what are you expecting out of the earnings period that we will see in the next couple of weeks? >> there is a slow down in the global economy. off recession in europe and a slowdown in china which is more significant than the chinese gdp numbers suggest. that is rippling to countries like korea, taiwan and japan. that is affecting the global economy. big global companies are hurt by t

decrease the deficit? >> yes, it's the only specific tax increase that-- of both candidates and if you would close the deficit and turn some of the tacks to the higher levels, and the revenues for the government, revenue enhancement. however, to cost patriotism to say a small fraction of the country will have an extra tax burden, everybody has to pay more taxes, in fact, if you combine the tax proposals of mitt romney and president obama, together you would have a patriotic plan where you're removing some of the benefits of the lower people the last 10, 15 years and then, we would have higher revenues cross the board and that would lower the deficit the most, and the other things in this that are not particularly patriotic. a lot of the obama proposals think there's a small group that can fix the problems. the thing with the car thing, we all have to pay a higher gas tax and help the deficit, and have the cars making 80 miles per hour and we're the ones driving far. >> you say you want to wave the flag for patriotism, you say there's something to it? >> yeah, sure, first of all, you've

is focused on what these two develop are talking bthe deficit. they have to deal with the deficit. but once you're done with the deficit you have to rebuild the middle class in this country and nobody is paying much attention to that. we have a lot of rhetoric in the campaign but-- >> but the necessary done to help the middle class is to nail down the fiscal issues. if we don't nail down the fiscal issues, i don't think anything will matter. >> but i'm with you, i think it will happen because of necessity, because of the fiscal cliff. >> what it will take to rebuild the middle class? >> it's taken three decades to basically decimate the middle class. it will take something like that to rebuild it. but we have to be dedicated to that. we're focused on a fescal deficit not a human deficit, and we have a human deficit in this country. we have 27 million people either unemployed, working part time, unwillingly, or dropping out of the labor market. >> schieffer: let me work michelle into this conversation. as you sit here hearing this, it's always education that seems to wind up at the

surplus countries on one hand which ones you mentioned on the deficit countries. greece is obviously a deficit country and these surplus countries i think the problem is that they're asking for certain concessions from the deficit countries like greece that go against the heart of autonomy and national self-determination and at the same time the servos countries are not willing to get into bail them out and i think the risk on risk off situation i would see in markets indicates that no one really knows how long that's going to continue but i think the markets are. convinced that it's not going to end well that it's not going to be able to go on and on now the ease increasingly looking east towards the china e.u. summit showed the team to kindle and close a friendship now what do you know thoughts on this relationship is it one that driven by mutual advantage or just desperation by the e.u. has always looked eastward in the sense that they've looked to expand their borders they've continued to move east but the last expansion hit a wall they kind of overextended themselves and i think